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Technology Stocks : Ampex Corporation (AEXCA)

AMPX 7.835

-1.1%

Dec 30 3:59 PM EST

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To: Milt Best who wrote (6161)	3/10/1999 11:55:00 PM
From: Ed Perry	Read Replies (1) of 17679

<< Maybe Enigma has the aggressive sales force required to spread the word about Ampex's DST. >> The models used in the computer industry ranged from direct sales on one extreme to channel partners on the other. Direct sales was the old IBM. Noone could make any money off of IBM unless the item was sold by an IBM salesman. Of course, as things changed this strategy took IBM straight to hell ===> $25.00/sh. Channel partners were used very successfully by Oracle, Informix early MicroSoft and most others. Here the manufacturer of the software or hardware advertises and lies and gives up some margin to the channel partners who gladly take the remaining margin as they resell and do system integration at the customers site. The advantage to the hardware / software manufacturer is being able to concentrate on product without being required to build a national sales force. Where Ampex sits, I do not know. I think they lean to direct close in sales. Listing Enigma with Sun HP and others as partners is confusing. Enigma functions more like a systems integrator while Sun and HP clearly are not - they simply use Ampex DST where it is appropriate. If Ampex wishes to participate in the high end general mass storage market then they will have to advertise (J. Marione?) and also build up a channel partner program. I do not think that Ampex has need nor working capital to build a direct sales force. Here, I disagree with Yahoo posters on this point. All is not lost. M. Cooper is thoroughly aware of the nuances of the finer points here. Ed Perry

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